The Business

Samsung comes out blazing in the tablet wars

Updated
November 09, 2012 00:44:28

For the first time in a long time the technology giant Apple is looking rattled as arch-rival Samsung makes big inroads in the lucrative tablet market and, last week, Apple fired two senior executives.

KONRAD SPILVA: In the workforce, you can just be more efficient the way you use a tablet in - it's very mobile, it's very, very portable, it's great for note-taking, great for presenting stuff to clients.

NEAL WOOLRICH: And as the interest grows from tablet users, so too is competition among tablet makers. In the September quarter Apple sold 14 million iPads, accounting for half of all global tablet sales, while its nearest rival Samsung shipped 5 million Galaxies. Samsung has been making up ground quickly, taking a big bite out of its rival's market share compared to last year.

KONRAD SPILVA: I think it's healthy. It helps every manufacturer innovate more, and the more they innovate, the better it is in our business and I think the better it is ultimately for consumers.

NEAL WOOLRICH: Technology Spectator's Supratim Adhikari says other players like Amazon and Google are happy to draw in customers through their tablets without making a profit.

SUPRATIM ADHIKARI: So for Amazon it really is about getting people to use the Kindle, to get in and use Amazon's content. For Google it's about using the Nexus as the interface which allows people to go onto the search engine and that's how Google makes money.

NEAL WOOLRICH: On Monday, Apple announced it had sold 3 million iPads over the weekend, although it's not clear how much of that came from the recent iPad Mini launch. But it capped a turbulent week when Apple's chief Tim Cook dismissed two of the company's senior executives, leading to speculation it was rattled by the rising competition for tablet sales.

SUPRATIM ADHIKARI: It's only a matter of time before Apple loses that edge it has had so far with regards to the operating system being seen as the most robust, the best operating system. I think that would be something that would worry Apple.

NEAL WOOLRICH: And now Apple's position in the tablet and smartphone market is also under threat from a sleeping giant. Microsoft has just unveiled the surface tablet and its own Windows smartphone and chief executive Steve Ballmer is promising to be a serious challenger in both of those markets.